The Income Tax Department has extended the final date for filing ITR of the FY 2018-19 once again. Now the deadline is 30th November 2020. So if you have still not filed your ITR, it’s the right time to do so.
Now, even if you have filed your return, it’s critical to verify it! The Income Tax Department has recently recognized that a large number of ITRs are cancelled every year.
Many taxpayers either do not know this, or this step simply slips out` of their minds. So if you, too, have filed your return recently, then you must confirm that it’s verified. If you forget to verify your return, it will get cancelled, and you might land in serious trouble.
In this blog, I will explain what happens if you don’t verify your returns. I will also talk about what steps you can take if you have forgotten to verify your ITR.
So without wasting too much time, let’s get started!
What is the ITR Verification Form?
ITR Verification form, generally known as ITR-V, is a single-page document after you file your ITR online (It is generated only when you do not use Digital Signature). This form is provided to you by the Income Tax Department to verify the authenticity of your e-filing.
If you want to verify your ITR physically, you will have to sign on receipt of ITR-V and send it to Income Tax Department CPC, Bengaluru. Once your ITR-V is received there, it will be verified against the records you submitted online. Once verified, your ITR will be considered Valid.
There is also a facility for the online verification of your ITR. You can do it by getting an Aadhaar OTP, EVC via Net banking, EVC via Bank Account, Verification through Bank Account, or by an EVC through your ATM. In case the process is simple and time-saving.
Note:
If you are using a Digital Signature to do so, you won’t have to verify your ITR.
Risks of failing to verify your ITR
The ITR verification should be completed within 120 days of filing your ITR. There are severe implications and legal penalties for failing to verify your ITR. For instance, your ITR will be regarded as invalid, and it will be cancelled.
This will break your ITR filing cycle, and if you are looking for a loan, you won’t be able to get it due to the cancellation of your ITR. You might be well aware that you need ITRs of at least the past three years for availing of any loan.
The other loss is related to your TDS refund. If you do not verify your ITR and the Department cancels it, your TDS refund may get terminated. This means you will lose all your TDS that you were liable to be refunded.
Another risk for not verifying your return is a penalty from Income Tax Department. Any failure to verify your ITR will result in the cancellation of your ITR. The record of not verifying your ITR is not carried forward. This might result in a notice from the Income Tax Department for the failure to file your ITR.
What to do if you fail to verify your ITR?
In case you fail to verify your ITR, there is one step that you can take as a last resort. You can apply u/s 119(2)(b) of the Income Tax Act to claim an exemption, refund, or any other such relief with a genuine reason. If the Department finds that some severe problem has stopped you from filing your ITR, your request will be entertained.
But, keep in mind that no such request to claim tax rebate or deficit will be entertained after six years of completing the given Financial Year.
What is our recommendation?
We recommend that you should file your ITR via specialized Accounting and Taxation agencies. These agencies are well aware of all the critical deadlines and necessary steps. So you won’t be at the risk of forgetting the ITR verification process!
They will charge some nominal fees, but it’s worth it! After all, staying compliant and getting your Tax rebate is a good-enough reward for such a small amount!
File your ITR with few simple steps
Talk to us for more details!
Probal Consulting Group is a leading Taxation, Accounting and Compliance firm that helps individuals, MSMEs and other businesses manage their accounting, taxation regulatory compliance affordably.
